Menu

Retire at 36 ….part 2

When we are young and you ask me to save 60% then what are we earning for….if we cant enjoy when we are young, when do we enjoy.

Instant gratification is a the bane of becoming wealthy. If you read The SNOWBALL-the biography of Warren Buffet, among the richest men in the world, you will realise the benefits of delaying gratification.

There are 3 other ways of looking at the same discussion which I put out in part 1.

Suppose you were to target a corpus of Rs3crore (30 million) at the age of 36 and today you are at 21.

An alternate to the 60% of Rs500000/- could be that you take your initial job at Rs10,00,000 and invest Rs400000/- in the first year and increase the investments every year by 5% for the next 15 years.

Or you could take a job at Rs500000/-, in the first year save only 40% but in the subsequent years increase the investments every year by 20% instead of 10%.

The last option is to not take up a job at all. Become an entrepreneur. An entrepreneur has the potential to grow earnings geometrically. The reinvestment in your own business can grow more powerfully than investing anywhere else.

At the end of the day the idea is to do what you love and love what you do….for that invest early so your nest egg can grow faster and then you can enjoy life forever.